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Tax Laws Amendment (2008 Measures No. 2) Bill 2008

Schedule 7 Superannuation lump sum paid to a member having a terminal medical condition

Part 1 Amendments

Income Tax Assessment Act 1997

1  Section 11-55 (table item headed “superannuation”)

After:

roll-over superannuation benefits ..........................................

306-5

insert:

superannuation lump sum for recipient having terminal medical condition ...............................................................



303-10

2  At the end of Division 303

Add:

303-10   Superannuation lump sum member benefit paid to member having a terminal medical condition

             (1)  This section applies to a * superannuation member benefit that:

                     (a)  is a * superannuation lump sum; and

                     (b)  is:

                              (i)  paid from a * complying superannuation plan; or

                             (ii)  a * superannuation guarantee payment, a * small superannuation account payment, an * unclaimed money payment, a * superannuation co-contribution benefit payment or a * superannuation annuity payment.

             (2)  The lump sum is not assessable income and is not * exempt income if a * terminal medical condition exists in relation to you when you receive the lump sum or within 90 days after you receive it.

Note:          For a lump sum you receive in the 2007-08 financial year, the period of 90 days may be extended until 30 June 2008: see section 303-10 of the Income Tax (Transitional Provisions) Act 1997 .

3  Subsection 995-1(1)

Insert:

terminal medical condition has the meaning given by the regulations.

Income Tax (Transitional Provisions) Act 1997

4  After Division 302

Insert:

Division 303 Superannuation benefits paid in special circumstances

Table of sections

303-10      Superannuation lump sum paid to member having a terminal medical condition

303-10   Superannuation lump sum member benefit paid to member having a terminal medical condition

             (1)  This section applies to a superannuation member benefit that you receive during the 2007-08 financial year and that:

                     (a)  is a superannuation lump sum; and

                     (b)  is:

                              (i)  paid from a complying superannuation plan; or

                             (ii)  a superannuation guarantee payment, a small superannuation account payment, an unclaimed money payment, a superannuation co-contribution benefit payment or a superannuation annuity payment.

             (2)  The lump sum is not assessable income and is not exempt income if a terminal medical condition exists in relation to you at a time in the period:

                     (a)  starting when you receive the lump sum; and

                     (b)  ending at the later of:

                              (i)  90 days after you receive it; and

                             (ii)  30 June 2008.



 

Part 2 Application

5  Application

The amendments made by this Schedule apply to payments made on or after 1 July 2007.